§ 19-702. Declaration of intent and policy

   (a) Statement of intent. -- In adopting this subtitle, the General Assembly intends to:

   (1) Provide alternative methods for the delivery of health care services to residents of this State, with a view toward achieving greater efficiency and economy in providing these services;

   (2) Encourage the formation of health maintenance organizations that provide health care services to subscribers or groups of subscribers who contract for these services under a system of prepayments; and

   (3) Encourage the formation of health maintenance organizations by such diverse groups as:

      (i) Nonprofit health service plans;

      (ii) Medical health service plans;

      (iii) Medical care foundations;

      (iv) Groups of professionals, either in the form of partnerships or professional corporations;

      (v) Consumer sponsored organizations; or

      (vi) Business or legal entities.

(b) Policy. -- To carry out the intent of subsection (a) of this section, the policy of this State is to:

   (1) Provide one overall State law that:

      (i) Regulates health maintenance organizations;

      (ii) Allows flexibility for the many forms these health maintenance organizations may take; and

      (iii) Facilitates public understanding and uniform administration of the rules and regulations that are adopted under this subtitle;

   (2) Eliminate legal barriers to the organization, promotion, and expansion of health maintenance organizations;

   (3) Provide for regulation of:

      (i) The quality of health care, by the Department and by professional standards review organizations where appropriate; and

      (ii) All other matters covered under this subtitle, by the Commissioner; and

   (4) Exempt health maintenance organizations from the insurance laws of this State, except as set forth in this subtitle.

HISTORY: An. Code 1957, art. 43, § 841; 1982, ch. 21, § 2; 1999, ch. 697.